Sovereign wealth fund investments and the US political process

Calluzzo, Paul; Guo, Dong; Godsell, David

doi:10.1057/s41267-016-0057-5

Cited by 45 publications

(31 citation statements)

References 43 publications

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“…International acquisitions benefit both acquirer and target firms, and particularly those firms with a greater institutional distance between them (Ellis et al, 2017;Renneboog et al, 2017). Foreign investors affect managerial behavior (Aguilera et al, 2017), and can have a political influence (Calluzzo et al, 2017). Foreign political connections positively affect firm value (Sojli & Tham, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…In this Special Issue, the papers comprise analyses of four types of international transfer of corporate governance: international M&As (Ellis et al, 2017;Renneboog et al, 2017), foreign investors (Aguilera et al, 2017;Calluzzo et al, 2017, foreign political connections (Sojli & Tham, 2017) and foreign directors (Miletkov et al, 2017).…”

Section: Mobility Of Governancementioning

confidence: 99%

“…Aguilera et al (2017) show that, in the presence of foreign investors, managers tend to be more optimistic in their early earnings forecasts, but have more long-term and timely adjustments relatively and avoid making last minute decisions. Calluzzo et al (2017) show that sovereign wealth funds are attracted to firms that are more engaged in campaign finance, and hence can have a political influence in the target firm's country. Sojli & Tham (2017) show that foreign political connections create large increases in firm value, improve access to foreign markets, and improve access to government contracts.…”

Section: Mobility Of Governancementioning

confidence: 99%

“…Likewise, a local firm may import overseas governance practices by appointing foreign directors on its board or attracting foreign investors through a cross-listing on a foreign exchange. In this introduction, we focus on four related channels through which corporate governance may be internationally mobile and highlight the contributions of the papers in this Special Issue: (1) international mergers and acquisitions (Ellis, Moeller, Schlingemann, & Stulz, 2017;Renneboog, Szilagyi, & Vansteenkiste, 2017), (2) foreign ownership (Aguilera, Desender, Ló pez-Puertas, & Lee, 2017;Calluzzo, Dong, & Godsell, 2017), (3) foreign political connections (Sojli & Tham, 2017), and (4) foreign directors (Miletkov, Poulsen, & Wintoki, 2017). Overall, the recognition of corporate governance mobility presents an important opportunity for further theory building in the contest of both IB and finance research, and this is a focal point of this Special Issue.…”

Section: Introductionmentioning

confidence: 99%

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Law, finance, and the international mobility of corporate governance

et al. 2017

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We introduce the topic of this Special Issue on the ''Role of Financial and Legal Institutions in International Governance'', with a particular emphasis on a notion of ''international mobility of corporate governance''. Our discussion places the Special Issue at the intersection of law, finance, and international business, with a focus on the contexts of foreign investors and directors. Country-level legal and regulatory institutions facilitate foreign ownership, foreign directors, raising external financial capital, and international M&A activity. The interplay between the impact of foreign ownership and foreign directors on firm governance and performance depends on international differences in formal/regulatory institutions. In addition to legal conditions, informal institutions such as political connections also shape the economic value of foreign ownership and foreign directors. We highlight key papers in the literature, provide an overview of the new papers in this Special Issue, and offer suggestions for future research.

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Section: Discussionmentioning

confidence: 99%

Section: Mobility Of Governancementioning

confidence: 99%

Section: Mobility Of Governancementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Law, finance, and the international mobility of corporate governance

et al. 2017

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“…Some evidence of the use of foreign government investment to meet political objectives already exists. Calluzzo, Dong, and Godsell (2017) find that foreign government investors are attracted to firms engaged in U.S. campaign finance and that firm campaign finance contributions increase after foreign government investment. Their findings are consistent with foreign government efforts to circumvent the constitutional ban on foreign influence in the U.S. political process.…”

Section: Capital Xenophobiamentioning

confidence: 90%

Financial Reporting Consequences of Capital Xenophobia

Godsell

2019

REPeC

Self Cite

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The purpose of this editorial is to describe financial protectionism as a potentially important determinant of financial reporting outcomes. Fear of foreign capital, or capital xenophobia, spurs financial protectionism. Examining the effects of financial protectionism on financial reporting outcomes potentially permits an expansion of positive accounting theory and, in particular, the political cost hypothesis. I first describe extant literature examining the political cost hypothesis. I then describe national-security related drivers of capital xenophobia. Next, I examine settings in which we can observe variation in financial protectionism. I conclude by positing varied paths by which financial protectionism can affect financial reporting outcomes.

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Corporate political connections in global strategy

Cui

et al. 2018

Global Strategy Journal

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Research Summary: The role of corporate political connections (CPC) in global strategy has been examined in a variety of institutional contexts and analyzed from different theoretical perspectives. This literature, along with the articles in this special issue, demonstrate the importance of contextualization in understanding the motivations, processes, and outcomes of firms developing and utilizing CPC in global strategy. We argue that context‐specific aspects of CPC, such as the political system in which the firm is operating, need to be incorporated more systematically to advance theory development globally. Future studies on CPC can advance this agenda through cross‐country comparative research, deeper engagement with political science literature, linking CPC with other nonmarket strategies, and configurational analysis of the multidimensional context of CPC. Managerial Summary: Multinational companies not only compete in a market environment, they engage with political actors in both their home and host societies. This special issue brings together research that explores how companies use their corporate political connections (CPC) to achieve firm objectives. Each study takes a different approach to studying the phenomenon, informed by the national context of their empirical data. Together, these studies highlight the importance of CPC around the world. However, the variation in research approaches also highlights that the “how and why” of companies' development and utilization of CPC vary across cultures and political systems. In consequence, the development of managerial recommendations always needs to carefully consider the pertinent political context of the available empirical evidence.

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Sovereign wealth fund investments and the US political process

Cited by 45 publications

References 43 publications

Law, finance, and the international mobility of corporate governance

Law, finance, and the international mobility of corporate governance

Financial Reporting Consequences of Capital Xenophobia

Corporate political connections in global strategy

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